Central Kentucky Transmission Company

Original Volume No. 1

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Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 245 Original Sheet No. 245 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

31. ANNUAL CHARGE ADJUSTMENT (ACA)

31.1 Purpose. The purpose of Section 31 is to establish an ACA Clause as

permitted by Section 154.402 of the Commission's Regulations under the

Natural Gas Act (NGA), which allows a natural gas pipeline company to

adjust its rates annually to recover from its Shippers annual charges

assessed it by the Commission under Part 382 of the Commission's

Regulations.

This Section establishes an ACA unit charge to be applicable to the

following Rate Schedules:

Rate Schedule FTS - Firm Transportation Service

Rate Schedule ITS - Interruptible Transportation Service

31.2 Basis of the ACA Unit Charge. The Rate Schedules specified in Section

31.1 herein shall include an ACA unit charge. Such ACA unit charge shall be

that annual charge unit rate, adjusted to Transporter's pressure base and

heating value, as appropriate, which shall be authorized by the Commission

each fiscal year. Changes to the ACA unit charge shall be filed annually to

reflect the annual charge unit rate authorized by the Commission for such

fiscal year. The ACA unit charge shall be reflected on Sheet No. 6 of this

Tariff.

31.3 Filing Procedure. The notice period and proposed effective date of

filings pursuant to this subsection shall meet the requirements of Section

154.207 of the Commission Regulations, unless, for good cause shown, a

lesser notice period and different effective date is allowed by valid

Commission order.